Risk Score
Pending analysis
Investment Range
$2,223,667 - $8,738,837
Franchise Fee
$15,000
Total US Locations
351
Business Summary
Golden Corral operates family-oriented steakhouse and buffet style restaurants that feature a wide variety of beef, pork, seafood, chicken, cold salads, vegetables, and desserts from an in-store display bakery. These restaurants offer food and beverage items for lunch, dinner, weekend breakfast, and snacks. Golden Corral provides two building designs for new restaurants, GC-11S and GC-11M, and also allows for retrofitted (conversion) restaurants in existing buildings.
Corporate History
Golden Corral Corporation, the parent company, began operating company-owned Golden Corral restaurants throughout the United States in 1973. Golden Corral Franchising Systems, Inc. was incorporated in Delaware on December 6, 1985, and has been offering franchises similar to its current offerings since April 1986. The parent company, GCC, is planning to open a new fast-casual concept called Golden Corral Favorites on April 22, 2025.
Financial Overview
Investment Range
$2,223,667 - $8,738,837
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$50,000
Royalty %
4%
Marketing %
2.4%
Equipment Costs (Low)
$1,874,617
Equipment Costs (High)
$5,627,207
Working Capital
$72,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Golden Corral Franchising Systems, Inc. demonstrates a strong financial position, reporting over $42 million in net income for the fiscal year ending January 1, 2025. The company's auditors provided an unqualified opinion, indicating that its financial statements are presented fairly. While cash and cash equivalents decreased slightly in the most recent fiscal year, total assets and liabilities also decreased, and the company has consistently paid substantial dividends to its parent company. No concerns about its ability to continue as a going concern were noted.
Financing Details
Golden Corral does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
351
Franchised Units
348
Corporate Units
3
Avg Square Footage
9,343
Franchising Since
1986
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Golden Corral was involved in litigation known as the BankUnited Matter. Initially, a Golden Corral franchisee and its owners were sued by a lender for defaulting on a note. The franchisee then filed several third-party claims against Golden Corral. Most of these claims were dismissed in December 2019. Golden Corral also filed a separate lawsuit against the same franchisee for over $1 million in unpaid franchise fees due to abandonment of the franchise. In March 2024, the court sided with Golden Corral, dismissing all of the franchisee's claims and awarding Golden Corral over $1.1 million in damages. The franchisee appealed this decision, but in March 2025, the appellate court affirmed the District Court's ruling, closing the matter in Golden Corral's favor. No other litigation requiring disclosure is reported.
Bankruptcy History
Golden Corral states there is no bankruptcy information that needs to be disclosed in this item.
Agreement Terms
Initial Term
15 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Golden Corral franchisees must provide written notice 6 to 12 months before their agreement ends. They must renovate and modernize their restaurant to meet current brand standards, including signs, equipment, furnishings, fixtures, and decor. Franchisees must be in good standing, with no defaults on any agreements or monetary obligations to Golden Corral or its affiliates. They also need to provide evidence of their right to occupy the premises for the renewal term or get approval for a new location. Franchisees are required to sign Golden Corral's then-current renewal Franchise Agreement, which may have different terms, and pay a renewal fee calculated as five times the prorated initial franchise fee based on the current initial franchise fee. Finally, they must sign a general release of claims and comply with current qualification and training requirements. However, Golden Corral is not obligated to renew if it decides to stop offering franchises in the state.
Training & Support Program
Franchisor Assistance
Before opening, Golden Corral provides site selection guidelines and consultation, on-site evaluations for proposed sites, generic plans and specifications for restaurant construction and design, and specifications for equipment, supplies, and inventory. Franchisees receive a pre-opening training program. Upon request and subject to personnel availability, Golden Corral offers 15 to 45 man-days of on-site management assistance for the restaurant's opening. They also provide an 'A-Team' of 20 to 24 personnel to assist with training non-managerial employees for the first and second restaurants. Franchisees are loaned a copy of the operations manual and receive initial accounting forms. After opening, Golden Corral provides updated equipment and inventory specifications, additional training programs, periodic advisory assistance on operations and promotion, and marketing materials for local advertising.
Initial Training Hours
743
Training Location
Certified training restaurants and Raleigh, North Carolina for classroom training.
Ongoing Support
After opening, Golden Corral provides continuous advisory support and materials regarding new developments in equipment, food products, packaging, and preparation without additional fees. Franchisees are required to attend additional training programs and seminars as designated by Golden Corral, for which training fees and expenses are borne by the franchisee. Golden Corral also requires participation in System marketing and restaurant monitoring programs, including email campaigns, messaging, newsletters, customer retention programs, surveys, and mystery shopper programs. Franchisees have access to general help desk support for systems (excluding the Qu POS system) and an electronic learning platform. Golden Corral has a franchise advisory council that meets three times a year to discuss plans and concerns.
Franchise Requirements
Ideal Candidate Profile
Golden Corral seeks an Operations Principal who will devote substantial time, energy, and best efforts to managing and supervising the restaurant's operations. This individual must possess restaurant operations experience at a level appropriate for managing the number and type of restaurants to be developed and must successfully complete Golden Corral's training program. If the Operations Principal does not have certified manager training or ceases active management, the franchisee must employ additional certified managers and, if operating five or more restaurants, a multi-unit supervisor who also completes Golden Corral's training program.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
non-exclusive
Territory Size Requirements
Development Areas are defined by one or more Designated Market Areas (DMAs) or portions of DMAs, potentially further refined by segmentation maps. For individual restaurants, a Protected Territory is typically granted within a 3-mile radius from the front door of the Approved Location. This radius may vary from 1/20th of a mile to 5 miles in high-density metropolitan areas and from 1 to 5 miles in other localities. However, Golden Corral reserves the right to operate or license others to operate in 'Non-Traditional Sites' (such as airports, hospitals, food courts, etc.) within these areas, and may also establish other restaurant concepts, regardless of proximity or financial impact on the franchisee.
Staffing Notes
Golden Corral restaurants require a dedicated management team and trained hourly staff. Each Golden Corral restaurant must have at least one full-time General Manager, one full-time Associate Manager-Kitchen, and one full-time Associate Manager-Service. A certified manager must be present in the restaurant at all times during operating hours. The General Manager for a franchisee's first restaurant must also work for a minimum of one full week in the grand opening of another Golden Corral restaurant. If the franchisee or their Operations Principal is not already a certified manager of an operating Golden Corral restaurant, the General Manager and Associate Manager-Kitchen for their first restaurant must complete an additional six-week 'Practice Management' training program. All managers must attend and successfully complete an initial 8-week training program, which includes Tier 1 and Tier 2 in-store training, and are required to attend refresher courses and seminars as designated by Golden Corral. Hourly employees, such as meat cutters, bakers, cooks, and servers, must participate in 20-60 hours of on-the-job training at an operating Golden Corral restaurant. For the opening of a franchisee's first and second Golden Corral restaurants, an 'A-Team' comprising 20 to 24 individuals from Golden Corral or authorized franchisees provides temporary on-site assistance for training non-managerial employees. For the third restaurant, a New Restaurant Opening Specialist (NROS) and an A-Team (including members from the franchisee's other restaurants) are provided, and for the fourth and subsequent restaurants, the franchisee is responsible for supplying their own A-Team and NROS. The franchisee or an approved Operations Principal must devote substantial time, energy, and best efforts to the management and supervision of the Golden Corral restaurant(s). If the Operations Principal has not completed Golden Corral's manager training program, the franchisee must employ an additional manager in each restaurant. For franchisees operating five or more Golden Corral restaurants, a multi-unit supervisor, who must also complete manager training, is required. Franchisees are solely responsible for all employment decisions, including hiring, firing, establishing remuneration, benefits, and disciplinary actions. All managers and key personnel are required to sign confidentiality and non-compete agreements.